COVID-19 creates a confidence crisis Thai people slow down their spending Because they are not sure about the financial economy


COVID-19 creates a confidence crisis Thai people slow down their spending Because they are not sure about the financial economy

COVID-19 epidemic It does not affect people’s daily life only. But including all types of business operations Both consumer products business Luxury goods Including the service industry

Maurine Tan, Chief Executive Officer, Wonderman Thomson Thailand

Maurice Tan, Chief Executive Officer of Wonderman Thomson Thailand,  said the COVID-19 epidemic was It’s a situation that the entire world has never encountered before. Having a profound impact on business operations Which Wonderman Thomson Thailand and Thattel have jointly collected Thai consumer behavior data. In purchasing various types of products and services To show the impact of the COVID-19 epidemic situation.

Thai people worry about COVID-19 The economy is the highest in Asia.

According to survey data, most people, up to three-quarters, believe the COVID-19 epidemic. Will cause an economic downturn In particular, 46% of Thais are concerned that the economic downturn will occur long after the COVID-19 epidemic, while another 40% believe the economic downturn. But it will recover quickly after the end of the COVID-19 epidemic. This is the highest rate of concern in Asia.

Concerns of a long economic downturn following the epidemic of COVID-19. Other countries are China 10%, Hong Kong 25% and Singapore 16%.

Phuwadon Tarasilp Director of Digital + CRM

COVID-19 affects the behavior of Thai consumers

In terms of purchasing behavior of products and services of Thai consumers,  Phuwadol Tharasilp, Director of Digital + CRM Wonderman Thomson Thailand has opened up consumer behavior. The study was categorized into three categories according to the type of business: fast-selling and low-cost goods (FMCG) businesses, high-priced goods businesses that rely heavily on purchasing decisions. And retail and service businesses

Fast-Selling and Low-Cost Product Business (FMCG)

Products in this group are Food and drink Health and beauty products And home use It was found that before the epidemic of COVID-19 Most people are more likely to buy products from a store than online channels. Especially convenience stores that are most popular with 76%

But after the COVID-19 epidemic, People with income below 30,000 baht prefer to buy products at the store less. 

But still buy products at convenience stores the same Or more than 52%. People who earn more than 30,000 baht will buy products. The same or buy more from the store And from online channels

Food and beverage products tend to purchase the same or more quantities. And buy with a bigger pack Did not decrease in any way Especially instant noodles, which had a 52% increase in purchase volume, except for alcohol, which had a marked decrease in purchase volume of 23%

Health and beauty products Medicines saw a 32% increase in purchase volume and 50% of the same amount before the COVID-19 epidemic.

As some medicines do not require a doctor’s prescription. So you can buy it for yourself But cosmetic products had a significant decrease in purchase volume of 16% and stopped by 12%.

Home products It is the least affected product. Because it is something that is necessary for daily life. In particular, detergents saw a 29% increase in purchase volume, tissue purchases increased by 24% and household cleaners increased by 22%.

After the COVID-19 epidemic situation has passed, most consumers will reduce their purchasing quantity of different types of products. Both from the storefront and from online channels Due to insecurity of the situation

Expensive goods businesses that require a lot of purchasing decisions

Products in this group are cars, real estate Electrical appliances Mobile phone and electronics Investment. Insurance And tourism During the COVID-19 epidemic.  The trend of purchasing products in this segment is clearly declining among people with salaries under 40,000 baht. People with salaries over 40,000 baht and up are also demanding to buy investment-related products. And more than 50% more insurance and mobile phones Another 44% of electronic devices, which could be viewed as people with more than 40,000 baht in salaries, were less affected by COVID-19.

Factors that make consumers with less than 40,000 incomes buy products in this segment are: Necessity is the most first, with 57% of the money being limited, so they have to decide whether to buy or not buy a product based on their life needs, and 42% of them have a brand in mind and 52% will shop. Original brand product that has been purchased before.

As for consumers with income of more than 40,000 baht or more, they do not choose to buy products as needed as consumers with income less than 40,000 baht. But will choose to buy products according to the value of their investment that will receive as Over 80% and more than 69% of these people have a brand in mind. And 56% will buy the same brands they have previously bought.

Retail and Service Business

Businesses included in the retail and hospitality segment include retailers, wholesalers, restaurants, entertainment and relaxation stores. Beauty and health shop And gas stations. When observing the frequency of consumers using the service. It was found that Entertainment and relaxation stores saw a 60.8% drop in consumer use, 58.1% drop in health activities, 56.5% drop in restaurants, 40.4% drop in beauty and health and 36.9 drop in shopping malls. % While retail stores And gas stations were less affected, decreased by 8.3% and 13.2% respectively.

Moreover, the amount of spending in most of the gas stations did not decrease. The same proportion of 43% and 5% more, and retail stores, spending more than 20% and the same by 30%.

Phuwadol gave further advice that business operators Or companies Should be alert to cope with the epidemic situation of COVID-19. But don’t panic too much. Using the following strategies.

Building loyalty It is important to help maintain the purchase demand of consumers. 

Including spending habits And the entrance rate to the storefront.The FMCG group must communicate and promote to consumers that there is still sufficient inventory in stock. To meet the needs of consumers who want to stock up on more products Including online purchase channels, promotions must be run to encourage bulk purchases such as free shipping, buy 1 get 1.

Need to reach more consumers in online channels Because during this time most consumers have to live in the house. More time using the Internet Promoting a product through online consumers’ eyes is important.

Businesses that sell expensive products The reason for the consumer’s purchase should be understood by creating a necessity. For people with low income And create a cost-effective investment for people who have more income.

conclude

Everyone already knows that COVID-19 affects a broader world. But the survey results clearly confirm that Products required for life are still available for purchase in normal quantities. But add more online channels While the product business group that requires a lot of purchasing decisions Has been completely affected The same is true for service businesses. Many businesses have to adapt to survive. But many businesses may have to shut down to wait for future opportunities.